Philip Morris International (PMI) recently launched the localized production of ZYN nicotine bags in Pakistan, and plans to achieve full-process manufacturing in the future. This move not only demonstrates its supply chain optimization capabilities, but also provides a reference globalization strategy framework for other brands such as VEEHOO. The following discusses the path that VEEHOO can learn from from three dimensions: production layout, market expansion, and regulatory adaptation.
Philip Morris International’s layout in Pakistan is divided into two stages: the initial focus is on imported raw materials and packaging, and the full-process local manufacturing is gradually achieved in the later stage. Similarly, VEEHOO can give priority to emerging markets with greater potential for e-cigarette consumption (such as Southeast Asia, the Middle East, etc.) and promote localized production in stages.
By cooperating with local OEMs to assemble core components, tariffs and transportation costs can be reduced, and market demand can be quickly responded to. Invest in the construction of its own factory to complete the closed loop from raw material procurement to finished product manufacturing, and enhance supply chain autonomy. Philip Morris International’s experience in investing $600 million and $3.2 billion in Colorado and Kentucky, respectively, to expand ZYN’s production capacity also shows that long-term capacity planning needs to match market growth expectations.
Philip Morris International entered the nicotine pouch market through the acquisition of Swedish Match and promoted ZYN as a growth engine. VEEHOO can learn from its “multi-category parallel” strategy: Horizontal expansion: Develop smoke-free product lines (such as nicotine lozenges, oral cigarettes, etc.) to cover different consumption scenarios. Technology iteration: Strengthen the research and development of new electronic cigarettes such as heat-not-burn (HNB) to improve product compliance. It should be noted that the regulation of products such as nicotine pouches varies significantly in different regions (such as China’s strict restrictions on the sale of nicotine pouches), so a regionalized product matrix needs to be designed in a targeted manner.
Philip Morris International faces regulatory challenges in many countries during its expansion, such as the temporary restrictions on ZYN online sales in the United States. VEEHOO needs to establish a forward-looking compliance system: Active adaptation: Study the e-cigarette tax, advertising restrictions and other policies of the target market in advance (such as the EU TPD directive and the US PMTA certification); Government-enterprise collaboration: Participate in the formulation of industry standards and promote differentiated supervision of harm reduction products and traditional tobacco.
Philip Morris International seizes the minds of consumers by emphasizing the “smoke-free and low-risk” characteristics of ZYN. VEEHOO can take the following measures: Scientific endorsement: Jointly publish harm reduction research data with third-party institutions to enhance product credibility; Scenario marketing: Promote e-cigarettes as an alternative to traditional cigarettes in workplaces, social and other scenarios.
Philip Morris International’s globalization path shows that brands need to find a balance in supply chain, product innovation and regulatory games. For VEEHOO, learning from its experience is not a simple copy, but based on the characteristics of the e-cigarette industry, building a trinity strategy of “localized production + diversified products + compliant operations” to achieve sustainable growth in a highly competitive market.
Tags: nicotine bag, heat-not-burn e-cigarette, smoke-free, low-risk, veehoo vape
